ENG-1986 — Page 197

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HOUSING

individual owners regarding their rights, power, duties and liabilities in relation to those parts of a building held in common ownership. Although the existence of an owners' corporation does not guarantee good management of a building, it has been found from experience that management standards in buildings which have owners' corporations have generally been better than in cases where no comparable management body exists.

There will also be other amendments dealing with management standards and pro- cedures. These clauses define more clearly the powers and responsibilities of the corpora- tions' management committee.

In addition to the proposed amendments, all Deeds of Mutual Convenant arising from new, non-industrial leases granted since February 1986 were required to contain a number of clauses aimed at improving the management of common areas in a building.

Administrative arrangements to improve private building management consist mainly of the establishment, in four districts to date, of building management teams. These teams of professional housing managers and assistants, together with the liaison staff of district offices, offer advice to owners' corporations, mutual aid committees and other building management bodies, at a district level.

The teams play an important role in encouraging the formation of owners' corporations and in providing advice to the members of management committees. They also work towards improving public awareness in building management matters by means of seminars and discussion groups.

Rent Control in the Private Sector

Statutory controls on rents and security of tenure in Hong Kong date back to 1921. The present_legislation governing these matters is the Landlord and Tenant (Consolidation) Ordinance.

The legislation is under constant review to improve its working and to achieve the ob- jective, recommended in 1981 by a Committee of Review and endorsed by the govern- ment, that as soon as circumstances permit, rent control should be phased out.

At present, statutory controls apply only to domestic premises in the private sector unless otherwise excepted. Tenants are afforded rent increase control and security of tenure. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession.

Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. However, provisions exist to facilitate negotiations by which the parties may reach an agreement whereby the tenant surrenders his protected tenancy in exchange for a consideration. The Rating and Valuation Department publishes explanatory pamphlets to help people understand their position in relation to the legislation, and provides an advisory and mediatory service to deal with the many practical problems arising from rent controls. It also operates a scheme under which rent officers attend district offices on set days each week to deal with referred cases and answer enquiries on landlord and tenant matters.

Pre-War Premises

Legislation controlling rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after World War II and in 1947 was embodied in the Landlord and Tenant Ordinance since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance.

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Part I previously applied to both domestic and business premises but as from July 1, 1984, it applies only to domestic premises. It restricts rents by reference to pre-war levels